Some get cherries, some get lemons

Pennsylvania's slot machines are finally spitting some coins into taxpayers' hands, four years after the commonwealth approved gambling to ease the burden of property taxes.

The Department of Education on Thursday released the estimated amount of tax relief that qualified property owners in the commonwealth's 501 school districts can expect to receive from gambling revenue.

In the greater Lehigh Valley, qualified homeowners in the Allentown School District will fare best, receiving an estimated $537 each. That's the second-highest total in the state after Delaware County's Chester-Upland School District, at $623. The lowest is $54 in the Dallas School District, near Wilkes-Barre in Luzerne County. The state average is $169.

"This is very good news for the citizens living in the Allentown School District," Superintendent Karen Angello said. "There has been a great local tax effort which has been of great benefit to the students. ... This property tax relief, coupled with the significant increase in state funding that the governor has proposed for our district, will benefit both our students and taxpayers."

Last month, state Budget and Administration Secretary Michael Masch certified that the fund balance available for property tax relief had reached $600.1 million, with an additional $101.9 million in a reserve account.

Gaming revenue from April through September is expected to provide an additional $232.5 million by Oct. 15.

Q: Do I automatically get relief?

A: No. Relief is available to property owners who are approved after filling out Homestead/Farmstead Exemption forms available from county assessment offices.

Owning land isn't enough to get people approved. They also have to show the land in question is their primary residence, and answer questions about whether any part of the property is used for rental housing, for example, or whether any part of the land is used for commercial agricultural production.

Some people who are eligible for tax relief won't get it this year because they didn't apply by the March 1 deadline. Anyone can still apply to receive money, but the soonest they'll get anything back will be in 2009.

In Philadelphia, relief will be applied to the wage tax rate rather than to property taxes. Residents will see a 5.7 percent reduction in the city's wage tax rate in 2009, while suburbanites who work in the city will see a 5 percent drop in the wage tax rate.

Q: Relief in my district is estimated at $161. Is that all I'll ever get?

A: The relief amount is expected to rise as more gambling facilities open. The level of relief certified by Masch is sustainable for at least five years. It includes revenue from the seven facilities already operating and five others scheduled to open next year.

It also assumes two Philadelphia facilities will open in 2010, which would make an additional $270 million available by 2013-14 -- the equivalent of an additional $75 in property tax relief for each Pennsylvania homeowner.

Q: Will I get a check in the mail?

A: No. The money will go directly to districts and tax bills will be reduced by the appropriate amount. Residents whose property taxes are paid by their mortgage company should check with the company to verify how the reduction will be handled.

Q: Will I really notice a difference in my bottom line?

A: It depends. East Penn homeowners, for example, are slated to receive an estimated $118 in tax relief. But the district has also proposed a 1.75 mill tax hike, meaning owners of properties with an average assessed value of $74,500 would pay $3,149, a $133 increase over this year's tax bill.

Many other districts are proposing tax hikes, though they may be reduced or eliminated as the budget process grinds on.

Sylvia Lenz, the business administrator for the Quakertown Community School District, said officials there have reminded residents that while the district's taxes may rise this year, they'll be getting a greater amount of money back from the state.

"Of course that's something that we need to take into consideration," she said. "But at the same time, we're recognizing that individuals are saying, "If your taxes weren't as high, we'd be getting more money."'

Quakertown officials are still considering possible budget cuts to reduce the size of an expected tax increase, she said.

As it stands now, she estimated the average tax bill would climb by $91 to $149 this year. The state estimates approved homeowners in the district will get $248 in relief.